For whole day the demons use to reside in Sea. They used to come out in night and devour human beings and saints. This onslaught endangered entire human race. Helpless mankind went to Sages for help. Sage had no answer. So they went to Lord Bramhadev. Bramhadev said “it is only great ascetic Sage Agasthi who could help you”. So everybody went to Sage Agasthi. They requested him to protect their lives. The great Sage marched towards sea. He drank it and made it waterless. This exposed Demons. It was day time and demons were weak while Gods were powerful. God’s used this opportunity and killed around 80,000 Demons. The remaining Demons ran in Patal (deep down the earth) with their wives and families.

Everybody was happy as they got rid of the demons. Sages and mankind worshipped and prayed Sage Agasthi. They requested him to fill the Sea water. Sage Agasthi laughed loudly. He said that he had not only swallowed but had also digested the sea water and was unable to return it.

Waterless Sea was worried. He approached Bramhadev, who said his salvation was in Gokarna realm. Bramhadev said “only the Lord Shankar can restore your water”. Accordingly Sea went to Gokarna. He built his hermitage. He consecrated a Shivlinga. He created a Tirtha Kunda. He engrossed himself in deep penance for thousands of years by fasting and controlling his organs. Ultimately, Lord Shankar pleased by his penance, asked him his wish. Sea requested Lord to return his original form full of water.

Lord said, “You will have to wait for some time. A King named Sagar shall be born. He will perform AshwamedhYagnya. As a part of ritual he will set free a Stallion to roam around. He will depute his sixty thousand son’s for protection of the Stallion. Jealous Indra (King of Gods) shall steal the Stallion during night time and hide it.

Sixty thousand Sons of King Sagar shall hunt the Stallion on Earth and in Heaven. Unsuccessful, they will start digging the Earth till they reach Patal. Here they will find the Stallion in a spiritual Hermitage of Sage Kapil. These evil sons shall challenge Sage Kapil for a war and one angry glance of Sage Kapil shall quash them off in a moment.

Grandson of King Sagar named as Bhagirath shall grieve the accidental death of his ancestors without Mukti and Moksha. For their salvation, he will bring down pious River Ganga from Heaven to Earth for performing obsequies on ashes of his dead ancestors. When Ganga reaches this point, your original form shall return.

It is this place where Sea undertook penance and since then benediction of the Shiva Linga is done as Sagareshwar and the pond created by Sea as SagarTirtha. This is situated exactly opposite to Lord Mahabaleshwar Temple, towards Sea. In fact the Tirthakunda is adjoined to the boundary wall of Lord Mahabaleshwar Temple.